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With unpopular austerity measures set to go before a vote in Greece later this week, the single currency reached a near record low against the Swiss franc and extended losses against the US dollar.
Speaking to Reuters, SEB currency strategist Richard Falkenhall suggested the Greek austerity plan will be approved in the face of public resistance.
"What's the alternative? It would be a total disaster. They couldn't let that happen when we are this close to a solution to postpone [a default]," he told the news agency.
Failure to approve the five-year austerity package would leave the Athens government without access to bailout funds and could make bankruptcy a real possibility.
Meanwhile, the US dollar rose by 0.4 per cent on average versus the major currencies as it capitalised on safe-haven demand.
Posted by Greg Secker
